Saudi Arabia Ice Cream Market Research Report: Forecast (2024-2029)

Market Insights & Analysis: Saudi Arabia Ice Cream Market (2024-29):

The Saudi Arabia Ice Cream Market size was valued at around USD 551.7 million in 2022 and is estimated to grow at a CAGR of about 7.50% during the forecast period, i.e., 2024-29. Ice cream is referred to as a frozen dessert crafted from ingredients like milk, cream, sugar, and occasionally additional components, often incorporating stabilizers like gluten to maintain its texture. The factor attributing to the growth in the demand for ice cream in Saudi Arabia is its temperature and hot & humid conditions.

The country is geographically located in the Arabian Peninsula and is covered by the Arabian Desert, owing to which the country experiences extreme climatic conditions. This hot & arid climate, especially during the summer season, compels the individuals residing in the country to opt for frozen foods comprising ice creams to experience immediate relief from the heat.

Moreover, the government of Saudi Arabia has started focusing on the non-oil sector to diversify its economy & mitigate its reliance on oil production & exports, leading to hotel & restaurant development across the country. As a result, the share of the non-oil sector & construction activity in its overall GDP is surging in Saudi Arabia.

The rise in the construction of hotels & resorts to upscale the country's infrastructure to facilitate construction is eventually supporting the sales of ice creams. In addition, the country is hosting international events to boost tourism & promote non-oil sectors like entertainment, culture, and sports. The government of Saudi Arabia has laid out plans like the National Tourism Strategy to facilitate tourism & welcome approximately 100 million tourists by 2030 by organizing cultural events. These events typically feature on-site ice cream vendors to meet the demands of attendees, resulting in increased ice cream sales.

Moreover, the government of Saudi Arabia has plans to host international events, hence the sales are expected to experience substantial growth further enhancing the Saudi Arabia Ice Cream Market size in the coming years.

Saudi Arabia Ice Cream Market Driver

Thriving Tourism & Hospitality Sector to Boost the Sales of Ice Creams in Saudi Arabia – Over the past few years, Saudi Arabia has emerged as a popular destination for tourists, attracting millions of visitors from around the globe due to the prevalence of cultural heritage sites & architecture. This increasing number of inbound tourists led to the construction of new hotels & restaurant projects to cater to the growing demand for the accommodation of guests. 

These hotels & restaurants offer ice cream to guests as a part of their buffets. In addition, major cities in Saudi Arabia like Riyadh, and Jeddah have observed a noticeable increase in contemporary dessert boutiques and ice cream parlors. These establishments have visually appealing ice cream creations, attracting tourists, especially the younger or GenZ population. Hence, the increasing number of hotels and restaurants in the country is increasing consumption, thus driving the Saudi Arabia Ice Cream Market.

Saudi Arabia Ice Cream Market Opportunity

Growing Recreational Activities & Events Fuel Demand – Saudi Arabia has been working on diversifying its economy to mitigate heavy dependence on oil. The country is hosting international events like Formula E races, the Dakar Rally, the Diriyah E-Prix, the Saudi International golf tournament, various music concerts, and cultural festivals yearly to boost tourism, attract foreign investment, and promote non-oil sectors like entertainment, culture, and sports.

These events welcome millions of tourists, as a result, catering companies like Gulf Mahmal Support Services Company Limited and Almays Catering Solutions, which provide food services during these events are using brick ice-creams. In addition, these events improve Saudi Arabia's international relations and enhance its diplomatic ties with other countries.

These events also engage the local community & boost national pride, and provide opportunities for Saudis to participate in and enjoy various forms of entertainment and culture. Further, these events also attract tourism & contribute to uplifting the economy, owing to which the government is likely to host events to encourage tourism. Hence, the ice-cream sales are expected to surge in the forthcoming years.

Saudi Arabia Ice Cream Market Challenge

Unavailability of Logistics Center & Disruption in Supply Chain Hinders Market Growth – Ice cream is a product that is acutely sensitive to temperature and requires storage & transportation in frigid conditions. According to the International Dairy Foods Association, approximately 0°F (-18°C) temperature is essential & referred to as optimum for the storage of the ice cream. As a result, effective logistics systems are essential for maintaining the quality of the ice cream & preserving its desired texture as it traverses the supply chain.

Therefore, the distributors are forced to keep the ice cream & related products safe in the cold storage units. However, the cold storage units in the country involve several challenges a lack of an integrated supply chain and standardization. As a result, there is an additional overhead cost for the distributors & manufacturers. Hence, the supply chain constraints negatively impact the sales of ice cream in Saudi Arabia.

Saudi Arabia Ice Cream Market Trend

Plant-based Ice Creams Gaining Momentum in Saudi – In recent years, the health and wellness trend has gained traction in Saudi Arabia since consumers are becoming increasingly conscious & aware of their eating habits. These fitness and wellness trends are widely observed among the younger generations since they tend to focus more on healthier lifestyles & better-eating routines in contrast to more geriatric generations who typically follow different and more traditional lifestyles.

As a result, ice cream manufacturers like Saudia, Iffco group, etc., are increasingly targeting health-conscious consumers through new product innovation strategies & launching products such as plant-based ice cream to engage more consumers. For instance,

• In 2023, Vegan chef 'Ola Kayal', launched a new vegan ice cream brand & its outlet called Nabati in Jeddah to cater to the growing demand for nutritional desserts.

The rising launches of the new & innovative product range designed especially for the health-conscious population of Saudi Arabia are facilitating ice cream sales by engaging more fitness freak individuals & would continue to accelerate the demand for ice creams in Saudi Arabia in the forthcoming years.

Saudi Arabia Ice Cream Market (2024-29): Segmentation Analysis

The Saudi Arabia Ice Cream Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2029 at the national levels. In accordance to the analysis, the market has been further classified as:

Based on Flavor:

• Mango
• Chocolate
• Vanilla
• Others (Strawberry, Butterscotch, etc.)

Mangoe-flavored ice cream is predicted to capture the potential share of the Saudi Arabia Ice Cream Market. Mangoes are tropical fruits known for their sweet & refreshing taste, making mango-flavored ice cream a natural choice to combat the heat and provide a cooling & enjoyable treat. Domestic manufacturers like Saudia Ice Cream Factory & others rely on the imports of raw materials to make the ice cream, which makes the prices of raw materials highly volatile, and the availability of some ice cream flavors is less & available at high prices only.

However, there has been a surge in the production of mangoes in Saudi Arabia due to government incentives & encouragement for vegetation. As a result, the reliance of domestic manufacturers on imports is decreasing. This increase in production has made it more accessible for domestic manufacturers, thus strengthening the supply chain.

Based on Sales Channel:

• Offline
  • Supermarkets & Hypermarkets
  • Convenience & Grocery Stores
  • Brand Owned Outlets
  • Ice cream Carts
  • Others (Vending Machine)
• Online

Offline sales captured a significant share of the Saudi Arabia Ice Cream Market due to the prevalence of ice cream carts & outlets such as Marble Slab Creamery Takausi, Thekra Ice Cream, etc., in Saudi Arabia. Individuals prefer to purchase ice creams from offline stores such as hypermarkets, grocery stores, and ice cream carts, which offer a variety of flavors and toppings, allowing customers to customize their ice cream experience. This variety caters to different tastes & preferences, making it appealing to a broad range of individuals, and enhancing the share of offline sales channels in the market.

Saudi Arabia Ice Cream Market Industry Recent Development:

• 2022: Baskin Robbins Saudi Arabia announced its partnership with Galaxy to develop a new milk chocolate ice cream flavor to engage more consumers.

Gain a Competitive Edge with Our Saudi Arabia Ice Cream Market

• Saudi Arabia Ice Cream Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Saudi Arabia Ice Cream Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.